Author Question: The above figure shows the cost curves for a typical firm in a competitive market. From the graph, ... (Read 116 times)

crazycityslicker · **on:** Jul 1, 2018

The above figure shows the cost curves for a typical firm in a competitive market. From the graph, estimate the firm's profits when price equals 10 per unit.

What will be an ideal response?

Question 2

A physical examination is NOT a good screening device for life insurance companies if

A) life-threatening diseases are usually undetected.
B) doctors cannot be easily bribed to write a good report.
C) medical history is a good predictor of life expectancy.
D) one's current state of health is a good predictor of life expectancy.

cupcake16 · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

When price = 10, p = MC when q = 60. TR = 600. The AC is just above 8.5, say 8.6. This yields TC = 516. The firm's profit is estimated to be around 84.

Answer to Question 2

A